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Test of the bank lending channel: The case of Hungary

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  • Yu HSING

    (Southeastern Louisiana University)

Abstract

This study examines the bank lending channel for Hungary based on a simultaneous-equation model consisting of the demand for and supply of bank loans. The three-stage least squares method is applied. This paper finds evidence of a bank lending channel for Hungary. Expansionary monetary policy via a lower interbank rate or open market purchase of government bonds to increase bank reserves/deposits would increase bank loan supply.

Suggested Citation

  • Yu HSING, 2014. "Test of the bank lending channel: The case of Hungary," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(590)), pages 115-120, January.
    • Handle: RePEc:agr:journl:v:xxi:y:2014:i:1(590):p:115-120
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